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Will Production Cuts by Rare Earth Giant Boost Prices?

iconOct 14, 2015 11:22
Source:SMM
China Northern Rare Earth Group High-Tech Co., one of the country’s rare earth giant, announced to cut output of rare earth smelting & separating product by 10% from full-year quota.

SHANGHAI, Oct. 14 (SMM) – China Northern Rare Earth Group High-Tech Co., one of the country’s rare earth giant, announced to cut output of rare earth smelting & separating product by 10% from full-year quota. Will the move give a strong boost to rare earth prices?  

Rare earth prices, especially praseodymium neodymium product, will rise on the news, SMM foresees. 

However, the rise will be only transitory, given still tepid end user demand. In fact, the amount of output to be cut by the company is just an ice berg of total capacity nationwide. The presence of illegally mined rare earth will keep prices in check.  

China Northern Rare Earth Group High-Tech Co. announced that it planned to cut output of rare earth smelting & separating product by 2,596 mt. 

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China Northern Rare Earth Group High-Tech Co.
rare earth prices

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